should I enter beginning year values as the asset amount for retirement and regular assets for correct calculations over the course of the year?

If I update asset values midyear does the program consider it a first of year value for further calculations or is it prorated?


Dan Royer's picture

You should enter asset balances (regular and retirement) from the very end of last year, not from the current date. Do not update during the year--the program is applying one full year of nominal return rate to that balance.

Forgive me for more clarity. So if I am using the program starting today (7/18/2016) I should enter my assets as of Dec 31st 2105 but my contribution plans for 2016. That way I will not double count. Correct?

The only issue I see is what if my assets have grown (or loss) more than the program calculates. I can see this possibly becoming more of an issue as the year progresses. Is that what the override actual year option helps with?

Dan Royer's picture

Yes, enter those balances for the beginning of the year--or as you say, Dec 31, 2015. This lets the program apply the entire year of interest earned per your assumptions. If it's off a bit at the end of the year, that's fine. It probably always will be since we never get the exact assumed rate of return. But you will assume that over time you'll get that average even if some years it's more and some years it's less. And, yes, put in your contributions you plan to contribute for 2016 in the contributions area for both you and the employer. And yes, that will mean you do not double count those.